IMF cuts MENA growth outlook as war disrupts trade, energy

The International Monetary Fund slashed its economic forecast for the Middle East and North Africa and said it expects lower global growth, blaming the Iran war for disrupting trade and energy markets.

The region’s GDP growth forecast has been cut to 1.1.% in the IMF’s latest World Economic Outlook, 2.8 percentage points lower than its January projection for this year.

Saudi Arabia is faring better than other countries, while the economies of Iran, Bahrain, Iraq, Kuwait and Qatar are now expected to ​contract, Reuters reports.

Growth is expected to rebound to 4.8% by 2027, presuming energy production and transportation return to normal over the next few months.

“MENA countries are facing unprecedented challenges, exceptional uncertainty in their outlook,” IMF Deputy Managing Director Bo Li said during a panel discussion in Washington.